Bill > S2230

This bill, titled the "Family Financial Protection Act," aims to enhance consumer protections in Massachusetts by establishing new regulations for consumer debts. It defines key terms like "consumer," "consumer debt," and "debt collector" to clarify the scope of the act, which applies broadly to all consumer debts primarily for personal, family, or household purposes. A significant provision establishes exemptions for a portion of a debtor's earnings from garnishment, protecting a minimum amount based on the federal and state minimum wage, with a cap on how much of the excess earnings can be garnished. The bill also sets a strict four-year statute of limitations for initiating actions to collect consumer debts, meaning creditors generally cannot sue for debts older than four years, and any attempt to collect such debts is prohibited unless the debtor voluntarily makes a payment. Furthermore, it limits the interest rates on judgments for consumer debts and caps attorney's fees that can be recovered by creditors, while allowing prevailing debtors to recover their attorney's fees. The act also clarifies that violations of its provisions will be considered violations of Chapter 93A, Massachusetts' consumer protection law, and any contract provision that violates the act is void. Finally, it provides protections against debtors being arrested for debt in certain circumstances, requiring notice and an opportunity to submit financial information before any warrant for arrest can be issued.